The Aroon indicator is a technical indicator developed by Tushar Chande in 1995 and is used by traders and investors to identify potential trend changes and to determine the current trend's strength. The name “Aroon” means “Dawn's Early Light” in Sanskrit and Tushar chose this name because it was designed to identify the beginning of a new trend.
The Aroon indicator consists of two lines, the Aroon-Up line and the Aroon-Down line, the lines are calculated based on the number of periods since the highest high and the lowest low within a specified time frame, typically 25 periods, but this can be adjusted depending on the user's preference.
Here's how the Aroon indicator is calculated:
The formula for calculating the Aroon Indicator is simple and shown below.
Aroon-Up = ((25 - Days Since 25-day High)/25) x 100
Aroon-Down = ((25 - Days Since 25-day Low)/25) x 100
This line measures the number of periods since the highest price point within the chosen time frame and if the indicator's time frame is set to 25 periods, the Aroon-Up line will show the number of periods since the last highest high.
This line measures the number of periods since the lowest price point within the chosen time frame and similar to Aroon-Up, the Aroon-Down line will indicate the number of periods since the last lowest low.
The Aroon indicator will show values between zero (0) and one hundred (100)
Word of Warning
Like any technical indicator, the Aroon Indicator is not perfect and may produce false signals, therefore, it's often used together with other indicators and analysis methods to confirm trading decisions.
How Does the cBot Open & Close Trades?
This cBot opens and closes trades when the Aroon UP and Aroon Down lines cross each other.
- When the Aroon-Up crosses above the Aroon-Down, a buy trade opens and a sell trade closes.
- When the Aroon-Down crosses above the Aroon-Up, a sell trade opened and a buy trade closes.
We recommend that you add additional risk features and other indicators to create the perfect strategy.
The indicator values are hard coded but can be easily adapted to a cBot parameter.
Stop Loss & Take Profit Calculation
A standard stop loss and take profit as well as position size can be set from the cBots parameter settings.
You can add additional risk management and other trade rules yourself or by contacting our development team.
Accumulative Swing Index cBot is provided with full source code by Spotware.com
How To View The Source Code
To view the source code for this cBot, you will first need to make sure you have downloaded and installed cTrader Desktop, you can also scroll to the bottom of this page for instructions on how to install the cBot. Once installed you will have the cTrader application open, next you need to navigate to the Automate application and click on the name of the cBot, the source should show in the right-hand window.
If you need more help watch a video tutorial on how to use cTrader Automate.
How to Attach Indicator to Chart
You do not need to attach the Supertrend indicator to your chart when you run the cBot, but it is a good idea to visually see the indicator to check your trade rules for opening and closing trades and any risk management.
Learn Algorithmic Trading
In this instructional guide, we aim to assist you in acquiring the necessary skills to engage in market trading through automated trading strategies (cBots) using the cTrader Desktop trading platform. By the conclusion of this tutorial, you will gain the confidence to employ a cTrader cBot alongside the Algo application of cTrader, enabling you to automatically execute and handle your market orders. This course is designed to familiarize novice traders with the fundamental principles of algorithmic trading utilizing the cTrader platform.
Learn Microsoft C# for Algo Trading
If you are new to coding your cTrader cBot for automated trading the following Microsoft C# course will help you modify the starter kit cBot in this download to add new features for your own personal trading strategy.
Algorithmic Trading Facts
A significant number of traders venture into algorithmic trading with the misconception that they have discovered a foolproof strategy that guarantees effortless wealth. However, this notion is far from reality. It is crucial to read this article, as it can save you valuable time and money.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
If you have any questions, please first search our coding help forum for the answer, if you cannot find it, post a new question.
Need Coding Help?
We can help you modify this cBot for your own personal trading strategy, contact our team for a quote.
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